BAF 3M EXAM 2021-22 - Brittany Goldsborough | Library

1

Capital, Revenue, Expense and Drawings are all classifications of owner’s equity accounts.

1

The owner bought a new truck for personal use. This event qualifies as a business transaction.

1

Net income or net loss is shown on the balance sheet.

1

A business transaction causes the financial position of the business to change.

1

Accounts Payable would be listed before a mortgage on a balance sheet.

1

A revenue account should normally have a credit balance.

1

The purchase of office equipment for cash affects both assets and liabilities.

1

A chart of accounts is the listing of all the accounts, with a number assigned to each.

1

The heading of a balance sheet answers three questions: Who? What? When?

1

Assets – Owner’s Equity = Liabilities

1

The term “debit” means increase, and the term “credit” means decrease.

1

Business debts owed to us by our customers are known as accounts payable.

1

All creditors have a claim against the assets of a business.

1

The Capital account represents the Owner’s claim on the assets of his business.

1

If a trial balance is in balance, the account balances are correct.

1

The number 410 indicates which type of account?

1

A debit to HST Recoverable would mean a business

1

Which of the following transactions would increase total liabilities?

1

What does a balance sheet show?

1

Which of the following statements about the general journal is incorrect?

1

How are assets listed on the balance sheet?

1

Which of the following transactions would affect owner’s equity?

1

What happens when an item that is subject to HST is sold by a business?

1

Prior to Metcalfe Enterprises going out of business, the accounting equation was the following:
A ($250 000) = L ($120 000) + OE ($130 000)

When the business closed down, the assets were sold for $200 000. As a result of this transaction, how much would the owner receive as her claim against the business?

1

Which of the following is not a source document?

1

What is the name given to an asset that is expected to last longer than one year?

1

Which of the following is not a current asset?

1

If the assets of a company are $10 000 and the liabilities are $7 000, then the correct figure for the Owener's Equity is:

1

If the owner of a business pays cash to repair the company's delivery truck:

1

A company spents $10 000 000 for an office building. Over what period should the cost be written off (expensed with depreciation)?

WORD BANK
Not all words are used, some are used mu

ASSETS, LIABILITIES. & OWNER’S EQUITY
BALANCE
BALANCE SHEET
BANK
CAPITAL
CASH
CREDITED
CREDITS
DEBITED
DEBITS
EQUITY
FISCAL
GENERAL LEDGER
LIQUIDITY
ONE
T-ACCOUNT
TRANSACTION
TRIAL BALANCE

1

The financial statement, reporting assets, liabilities, and owner’s equity at a specific date, is called a _______ 

1

A financial event changing the value of items on the balance sheet is called a(n) _______  of the business.

1

The fact that a(n) _______  is in balance does not necessarily mean that the books are completely accurate.

1

After analyzing transactions, it is possible for several items to change, but never only _______  .

1

After analyzing each transaction, the fun dam ental accounting equation must still _______  .

1

When recording a journal entry, the accounts to be _______  are indented. 

1

A file, or group of accounts, is known as a(n) _______.

1

The difference between the total debits and total credits in an account is called the _______.

1

A listing of ledger accounts and their balances is referred to as a(n) _______ .

1

The owner’s withdrawal of cash for personal use reduces cash and _______.

1

A(n) _______ is used to record changes in assets, liabilities, and equity accounts.

1

The financial statement on which the Drawings account appears is called the _______. 

1

The period of time over which earnings are measured is called the accounting period or the _______  period.

2

A cash investment by the owner increases _______ and _______.

3

The accounting equation is based on three fundamental parts: _______ , _______  and _______ .

2

Complete the following table showing which account will be debited or credited for each transaction.

Received $450 cash from customers who owed the business money.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

Bought a truck for $18 500. Made a down payment of $5 000 and will pay the rest later.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

Made the regular $1 000 payment on the bank loan.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

The Owner invested $20 000 more in the business.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

Paid $250 to a creditor.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

Paid Bell Canada $27 for the monthly bill.

Debit: __________
Credit: __________

8

Drag and Drop the correct response for the statement.

The accounting department learns of transactions from business papers called _____________________  .

A ____________________   is a business form prepared whenever goods or services are sold for cash.

A __________________   is a business form prepared whenever goods or services are sold on account.

The account debited for all sales on account is ________  .

In any sales transaction, the party that sells is known as the ___________  .

A _____________________   is a business form representing a purchase of goods on account.

The ________________________________   is the business paper that records payments coming in from customers.

A bank __________  memo, initiated by the bank, will decrease the Bank account of a business.